TIPS: Who Needs Life Insurance

It seems that most of us who are working and older adults have been offered life insurance. However, what exactly is a life insurance benefit yourself and do you need it? Normally, when we buy a product, we would expect to use it. This is not the case with life insurance. Life insurance is a product that not ever buyer needs, because the life insurance coverage will be paid only when the owner dies. This product is intended to provide protection to the family or anyone you are your financial dependents.


It may also happen that the life insurance buyer can use the product bought. This possibility occurs only if the owner of the life insurance suffers a permanent disability that causes a loss of income. In such cases, the service provider will cover the life insurance and pay the funds as stated in a written business agreement. If it was not to cover the whole of the income, the life insurance providers will disburse funds in accordance with the losses and it is put down in the contract with the owner of the policy.


With the scheme as above, it is natural that many people refuse to buy a life insurance policy. Indonesian culture is still reluctant to predict death. Moreover, it seems to take advantage of people who die.

  • Benefits of Life Insurance

In fact, each person has different preferences to determine whether they need life insurance or not, it is perhaps the most important part in the determination of financial planning.You have primary responsibility for ensuring the future of the family and people you love, in order to keep the lifestyle you have running according to your plans, even if you do not plan to assist them in the world. For this reason, life insurance policy for you is very important and should be considered if you do not already have one. Even if you already have one, you need to think about whether your life insurance policy still meets the future needs of your family. You may want to upgrade to the next option, if the life insurance policy you currently have does not meet the requirements you feel you need.


The need for life insurance policy is a priority if most of your income is to support the needs of your family each month, such as to pay for a home mortgage, car, credit card payments, children and so on. Do not view life insurance as only for those who have a family. For those of you who are single and young, life insurance policy is a product that you need, especially for those people who help the finances of loved ones, for example, to support school fees for siblings, or to help other needs of relatives.


The policy can also cover the unexpected costs, such as income if seriously ill and unable to work, funeral costs, and even cover any or debt you have left behind. For young couples, it is better to buy a life insurance policy, especially those planning children. Buying a policy today would be cheaper than if you and your spouse buy a policy a few years later.


The policy instalments to be paid to those who have reached retirement age or above 50 years is huge. Therefore, life insurance does not seem necessary, especially if the children and other family members have independence.


You can still transfer the life insurance policy, on property owned, especially those that are passive. Suppose you have two homes and two plots of land, you can allocate one or more insured property for a time that it might be needed Рalthough it would be better if the property was converted into  more liquid funds at any time and stored in the form of other securities.


You are also advised to evaluate insurance products to select the most appropriate, ranging from the premium payable to the benefits obtained. The choice to purchase any life insurance product is in your own hands.


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